Actionable Insights From APT's Retail Practice

Chase Rolls Back $5 ATM Fees

May 18th, 2011 | Posted by Will Weidman in Financial Services | Uncategorized - (Comments Off on Chase Rolls Back $5 ATM Fees)

JP Morgan Chase recently announced that it is ending its test of $4 and $5 ATM fees in select markets.  Most banks currently charge $3; Chase decided to push the envelope, in part to find ways to make up for lower fee income due to increased regulation.  Chase reported that ATM transactions dropped too significantly to continue pursuing the strategy.

While some may view this as a failure at first glance, it is exactly the opposite.  Consumers have broadly accepted $3 ATM fees, and since Chase customers don’t pay fees at in-network ATMs, there was no risk of losing current customers.  A $4 ATM fee represents a 33% increase from current levels, meaning that transactions from non-customers would have to drastically decline to result in less revenue. (more…)

B of A Considers Bringing Back Overdraft Protection

May 13th, 2011 | Posted by Will Weidman in Financial Services | Uncategorized - (Comments Off on B of A Considers Bringing Back Overdraft Protection)

Last March, Bank of America decided to get rid of overdraft protection.  The changes to Regulation E won’t take effect until July and only required that customers opt-in to overdraft protection, but Bank of America felt that removing overdraft protection was better aligned with what customers wanted.

A Bank Technology News article reports that B of A is considering a change to this policy that would give customers the ability to respond to a text message and allow overdraft coverage for a particular transaction, as customers are now responding that they would like some version of overdraft protection and would like “more options and more control.” (more…)

How to Drive a 5% Improvement in Performance

May 6th, 2011 | Posted by Will Weidman in Uncategorized - (Comments Off on How to Drive a 5% Improvement in Performance)

Businesses have huge amounts of data available to them.  A recent New York Times article looks at whether that data actually helps companies make smarter decisions and drive value. 

The article cites a study by two professors from the Wharton School, which found that companies “that adopted ‘data-driven decision making’ achieved productivity that was 5 to 6 percent higher than could be explained by other factors.”  That level of performance increase is massive and would provide a significant advantage over competitors.    (more…)